Filtered By: Money

DBP lauds Senate reso seeking probe on planned merger with Landbank

State-owned Development Bank of the Philippines (DBP) welcomed a Senate resolution seeking inquiry on its proposed merger with Land Bank of the Philippines, with the latter as the surviving entity.

In a statement, the DBP said it is “prepared to work with Congress and to participate and provide unequivocal support to any Congressional inquiry that may be undertaken concerning the proposed merger Landbank.”

The state-run lender said that its chairman Dante Tiñga and president and chief executive officer Michael de Jesus thanked Senator Risa Hontiveros for filing Senate Resolution No. 570, which would allow for a more extensive analysis and broader consultation with "key stakeholders and resolve not just the legal issues but all the operational and personal issues.”

Hontiveros filed the resolution for a probe as she raised concerns about the potential risks and benefits of the possible merger. 

“The DBP believes that any congressional inquiry, in aid of legislation, will serve as a pivotal venue to facilitate healthy, dynamic, and robust discourses and enable all stakeholders to thresh out the myriad of issues surrounding the merger in order to arrive at the best possible approach that would redound to the best interests of the Filipino people,” the bank said.

Last week, the Governance Commission for Government-Owned and Controlled Corporations (GCG) submitted to the Office of the President the result of its legal study which says the merger of Landbank and DBP can proceed without legislation and can be done through an executive action.

The study, in particular, says that Republic Act No. 10149 or the GOCC Governance Act of 2011, among other legal bases, statutes, and applicable jurisprudence, empowers the GCG to ascertain whether such GOCCs should be merged.

The DBP, however, said it shares the sentiments of legislators on the need to undertake a rigorous and meticulous analysis of the proposal as the planned merger would entail a significant impact not only on the future of the two largest financial institutions of the government but also on the wider banking industry and the Philippine economy in general.

“DBP is one with its employees in expressing concern on the ramifications of the merger on their livelihood and employment, their financial security, and their current status as government employees,” the bank said.

“We stand by our DBP union leaders in seeking alternative and viable platforms where their collective voices may be properly heard and their legitimate concerns may be effectively addressed,” it said. —VAL, GMA Integrated News